Problems facing the Global Supply Chain
March 27, 2022
Are you waiting for a long overdue package? Your package might be stuck at sea.
The Pandemic has taken a huge toll on the supply chain causing numerous amounts of backlogs and shortages. Companies are finding ways to help fix this problem in their supply chain.
One problem they have found is that not all materials for a product are made in the same location, for example materials that make boots do not all come from the same place, materials like leather, straps, soles, and so on are each made at different manufacturers and all come together to eventually to be distributed.
Supply chains are global and because of this shortage the cost of items has increased.
Companies have started to set up factories in multiple parts of the world, so products can be supplied to the closest markets, this will help minimize the risk of shortages; This is known as regionalization.
Another strategy companies have come to use is known as nearshoring, this method pulls production from far away and brings them back or closer to where products are distributed and sold. If you find yourself with any logistic problem contact us, we will be happy to help you.